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I guess the question is why is the priority changed when a Dev acknowledges it? That does not make sense in my mind. Or if they have acknowledged it wouldn't that stop the response timer as it has now been responded to?

We do not have that issue. First Response timers stop when someone responds. We have resolution timers and if an issue becomes escalated than the resolution timer may change.

Thank for the quick reply. The way devs works here is that an event is reported by a end-user as High, However, when the dev investigate, he might discover that the issue is in reality a Urgent priority since it impacts multiple services, users, etc.

This is why at this point, the dev. would upgrade the priority to Urgent.

By changing the priority, it also updates the SLA goal for the ticket.

Let's say the Dev. acknowledge the ticket (raised with an High priority) within an hour, let say 45 min, the SLA is met. However, by updating the priority to High, the SLA is now showing as breached because the SLA goal for Urgent is 15m.

I don't think there is anything to change that. Perhaps you shouldn't set your SLA for Response times based on priorities or keep it the same for all priorities if the priority is subject to change AFTER it's been assessed. Maybe then focus on the time to resolution once the true priority has been set.